InMode Reports First Quarter 2026 Financial Results: Quarterly GAAP Revenue of $82 Million, Represents 5% Year-Over-Year Increase

YOKNEAM, Israel,May 6, 2026/PRNewswire/ --InMode Ltd.(Nasdaq:INMD)("InMode"), a leading global provider of innovative medical technologies, today announced its consolidated financial results for the first quarter of 2026.

●  Quarterly GAAP revenues of $82.0 million, compared to $77.9 million in the first quarter of 2025.

●  Quarterly revenues from consumables and service of $21.4 million, an increase of 6% compared to the first quarter of 2025.

●  GAAP operating income of $10.1 million, *non-GAAP operating income of $14.0 million.

●  Total cash position of $537.2 million as of March 31, 2026, including cash and cash equivalents, marketable securities and short-term bank deposits.

●  As of March 31, 2026, we completed the repurchase of 2.55 million ordinary shares pursuant to our share repurchase program, returning $34.8 million of capital to shareholders ($3.6 million of which was paid during the second quarter of 2026).

●  Announced CFO transition; Yair Malca steps down and will support an orderly transition as a consultant.

●  Board transition: Dr. Michael Anghel resigns; Dr. Hadar Ron appointed Interim Chair of the Board.

(U.S. dollars in thousands, except for per share data)

Revenues

$82,017

$77,874

Gross Margins

75 %

78 %

Operating Margins

12 %

20 %

Net Income

$11,562

$18,201

Earnings per Diluted Share

$0.18

$0.26

(U.S. dollars in thousands, except for per share data)

Gross Margins

75 %

79 %

Operating Margins

17 %

23 %

Net Income

$15,872

$21,395

Earnings per Diluted Share

$0.25

$0.31

*Please refer to "Use of non-GAAP Financial Measures" below for important information about non-GAAP financial measures. Areconciliation between U.S. GAAP and non-GAAP Statement of Incomeis provided following the financial statements included in this release.Non-GAAP results exclude share-based compensation, expenses related to independent transaction committee review (representing non-recurring cost) and related income tax adjustments where applicable.

"While the macroeconomic environment remains challenging, our total revenue this quarter reached our expectations, however our profitability was lower than expected," said Moshe Mizrahy, Chief Executive Officer of InMode.  "We are continuing to re-shape our organization in North America and in Europe by enhancing our sales and management teams. While the demand in the aesthetics market may be deferred, it will not be diminished, and we believe we are well positioned for its return."

Total GAAP revenues for the first quarter of 2026 were $82.0 million, an increase of 5% compared to $77.9 million in the first quarter of 2025.

Yair Malca, Chief Financial Officer of InMode added, "We are encouraged to report that Q1 revenue increased 5% year over year, with the U.S. contributing meaningfully to this growth. These results reflect our ability to execute consistently, even in a softer market environment and expand outside of the U.S."

GAAP gross margin for the first quarter of 2026 was 75%, compared to 78% for the first quarter of 2025.

*Non-GAAP gross margin for the first quarter of 2026 was 75%, compared to 79% for the first quarter of 2025.

GAAP operating margin for the first quarter of 2026 was 12%, compared to 20% in the first quarter of 2025.*Non-GAAP operating margin for the first quarter of 2026 was 17%, compared to 23% for the first quarter of 2025. These decreases were primarily attributable to the increase in cost of goods, the new structure of the North America sales team implemented towards end of 2025 and subsidiary establishments in the latter part of 2025.

InMode reported GAAP net income of $11.6 million, or $0.18 per diluted share, in the first quarter of 2026, compared to $18.2 million, or $0.26 per diluted share, in the first quarter of 2025. On a *non-GAAP basis, InMode reported net income of $15.9 million, or $0.25 per diluted share, in the first quarter of 2026, compared to $21.4 million, or $0.31 per diluted share, in the first quarter of 2025.

As of March 31, 2026, InMode had cash and cash equivalents, marketable securities and short-term bank deposits of $537.2 million.

"In a quarter marked by ongoing macroeconomic uncertainty, we remained focused on what we can control: driving profitability, generating cash, and operating the business as usual. We also returned meaningful capital to shareholders, repurchasing $127.4 million of shares during 2025 and $52.7 million year to date under our new 2026 repurchase program, representing 3.86 million shares. With our strong financial position and continued flexibility, we remain well positioned to pursue a full range of capital allocation opportunities," concluded Malca.

The Company announced today that Dr. Michael Anghel has resigned from the Company's Board of Directors, effective May 5, 2026. His decision was not related to any disagreements with the Company's management, Board, or operations. The Company thanks Dr. Anghel for his service and wishes him continued success.

Dr. Hadar Ron has been appointed Interim Chair of the Board, effective immediately.

Separately, Yair Malca has stepped down from his role as Chief Financial Officer, effective May 5, 2026. The Company appreciates his contributions and thanks him for his service.

To support a smooth transition, Mr. Malca will remain engaged with the Company in a consulting capacity for at least six months.

Management provided an outlook for the full fiscal year ending December 31, 2026. Based on current estimates, management expects:

• Revenues between $365 million and $375 million

• *Non-GAAP gross margin between 74% and 76%

• *Non-GAAP income from operations to be between $73 million and $78 million

• *Non-GAAP earnings per diluted share between $1.33 and $1.38

This outlook is not a guarantee of future performance, and stockholders should not rely on such forward-looking statements. See "Forward-Looking Statements" for additional information.

*Please refer to "Use of non-GAAP Financial Measures" below for important information about non-GAAP financial measures. A reconciliation between U.S. GAAP and non-GAAP Statement of Income is provided following the financial statements that are included in this release. Non-GAAP results exclude share-based compensation, expenses related to independent transaction committee review (representing non-recurring cost) and related income tax adjustments where applicable.

However, these estimates are based on management's current estimates, which may be updated.

Regarding the current situation in Israel, on October 9, 2025, a new cease-fire agreement between Hamas and Israel began, and the hostilities have formally paused after two years of conflicts.

Moreover, On February 28, 2026, the United States and Israel launched coordinated joint military strikes against Iran, targeting military, governmental, and nuclear-related sites. Iran subsequently responded with missile and drone attacks against targets in the region and sought to restrict commercial shipping traffic through the Strait of Hormuz. On April 7, 2026, a two-week ceasefire established and was extended on April 21, 2026, by the U.S government, amid ongoing negotiations, while a U.S. naval blockade of Iran continued.

The scope and severity of ongoing conflicts in Gaza, Northern Israel, Lebanon, Iran, and the broader region are unpredictable and could escalate any time. To date, our operations have not been materially affected. We continue to monitor political and military developments closely and examine the consequences for our operations and assets.

In addition to InMode's operating results presented in accordance with GAAP, this release contains certain non-GAAP financial measures including non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP operating margin, non-GAAP gross margin and non-GAAP income from operations. Because these measures are used in InMode's internal analysis of financial and operating performance, management believes they provide investors with greater transparency of its view of InMode's economic performance. Management also believes the presentation of these measures, when analyzed in conjunction with InMode's GAAP operating results, allows investors to more effectively evaluate and compare InMode's performance to that of its peers, although InMode's presentation of its non-GAAP measures may not be strictly comparable to the similarly titled measures of other companies. Schedules reconciling each of these non-GAAP financial measures are provided as a supplement to this release. Reconciliations of non-GAAP gross margin, non-GAAP income, and non-GAAP earnings for management's projections of such non-GAAP financials for the 2026 fiscal year are not available without unreasonable effort due to the variability, complexity and limited visibility of certain reconciling items. These reconciling items could have a significant and unpredictable impact on our future GAAP results.

Mr. Moshe Mizrahy, Chief Executive Officer, Dr. Michael Kreindel, Co-Founder and Chief Technology Officer and Mr. Yair Malca, Chief Financial Officer, will host a conference call today, May 6, 2026, at 8:30 a.m. Eastern Time to discuss the first quarter 2026 financial results.

The Company encourages participants topre-register for the conference call using the following link:

https://dpregister.com/sreg/10207930/103b6ad5664.

Callers will receive a unique dial-in number upon registration, which enables immediate access to the call. Participants may pre-register at any time, including up to and after the call start time.

For callers who opt out of pre-registration, please dial one of the following teleconferencing numbers. Please begin by placing your call 10 minutes before the conference call commences. If you are unable to connect using the toll-free number, please try the international dial-in number.

U.S./Canada Toll-Free Dial-in Number: 1-833-316-0562Israel Toll-Free Dial-in Number: 1-80-921-2373International Dial-in Number: 1-412-317-5736Webcast URL:https://event.choruscall.com/mediaframe/webcast.html?webcastid=7s0HUsXw

At:8:30 a.m. Eastern Time5:30 a.m. Pacific Time

The conference call will also be webcast live from a link on InMode's website athttps://inmodemd.com/investors/events-presentations/.A replay of the conference call will be available from May 6, 2026, at 12 p.m. Eastern Time to May 20, 2026, at 11:59 p.m. Eastern Time. To access the replay, please dial one of the following numbers:

A replay of the conference call will also be available for 90 days on InMode's website athttps://inmodemd.com/investors/.

InMode is a leading global provider of innovative medical technologies. InMode develops, manufactures, and markets devices harnessing novel radio frequency ("RF") technology. InMode strives to enable new emerging surgical procedures as well as improve existing treatments. InMode has leveraged its medically accepted minimally invasive RF technologies to offer a comprehensive line of products across several categories for plastic surgery, gynecology, dermatology, otolaryngology, and ophthalmology. For more information about InMode, please visitwww.inmodemd.com.

The information in this press release includes forward-looking statements within the meaning of the federal securities laws. These statements generally relate to future events or InMode's future financial or operating performance, including the actual amount of share repurchases made by the Company, if any. Actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. In some cases, you can identify these statements because they contain words such as "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "predict," "project," "will," "would" and similar expressions that concern our expectations, strategic plans or intentions. Forward-looking statements are based on management's current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Consequently, actual results could differ materially from those indicated in these forward-looking statements. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements included in InMode's Annual Report on Form 20-F filed with the Securities and Exchange Commission on February 10, 2026, and our subsequent public filings. InMode undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which pertain only as of the date of this press release.

Company Contact:

Yair Malca

Chief Financial Officer

Phone: (949) 305-0108

Email:[email protected]

Investor Relations Contact:

Miri Segal

MS-IR LLC

Email:[email protected]

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(U.S. dollars in thousands, except for per share data)

(Unaudited)

82,017

77,874

20,465

16,963

Research and development

3,542

2,895

Sales and marketing

42,932

39,727

General and administrative

5,022

2,671

Finance income, net

4,296

6,859

2,790

4,276

Basic

0.18

0.26

Diluted

0.18

0.26

Basic

63,401

68,760

Diluted

63,942

69,435

CONDENSED CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands, except for per share data)

(Unaudited)

Cash and cash equivalents

394,295

302,543

Marketable securities

57,032

83,632

Short-term bank deposits

85,832

169,159

Accounts receivable, net of allowance for credit losses

40,703

43,504

Prepaid expenses and other receivables

31,509

25,733

Inventories

71,408

74,050

680,779

698,621

Accounts receivable, net of allowance for credit losses

5,210

3,005

Deferred income tax assets

52,922

53,230

Operating lease right-of-use assets

8,631

8,274

Property and equipment, net

2,595

2,599

Other investments

700

700

70,058

67,808

750,837

766,429

Accounts payables

16,853

17,912

Contract liabilities

16,369

12,093

Other liabilities

44,131

40,739

77,353

70,744

Contract liabilities

2,745

3,043

Other liabilities

4,657

4,436

Operating lease liabilities

4,829

5,008

12,231

12,487

89,584

83,231

661,253

683,198

750,837

766,429

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(U.S. dollars in thousands, except for per share data)

(Unaudited)

Net income

11,562

18,201

Adjustments required to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

175

174

Share-based compensation expenses

2,699

2,518

Change in allowance for credit losses of trade receivable

525

(94)

Gains on marketable securities, net

–

(2)

Finance expenses (income), net

719

(1,574)

Deferred income taxes, net

327

896

Changes in operating assets and liabilities:

Decrease in accounts receivable (current and non-current)

72

4,544

Increase in other receivables

(5,866)

(3,532)

Decrease (increase) in inventories

2,642

(4,233)

Increase (decrease) in accounts payable

(1,059)

1,270

Decrease in other liabilities (current and non-current)

(388)

(3,287)

Increase (decrease) in contract liabilities (current and non-current)

3,978

(837)

Net cash provided by operating activities

15,386

14,044

Investment in short-term deposits

(84,912)

–

Proceeds from short-term deposits

167,658

31,297

Purchase of fixed assets

(172)

(85)

Purchase of marketable securities

(9,727)

(20,877)

Proceeds from sale of marketable securities

–

3,003

Proceeds from maturity of marketable securities

36,256

62,147

Net cash provided by investing activities

109,103

75,485

Tax withholding related to vesting of restricted share units

(1,802)

-

Repurchase of ordinary shares

(31,241)

(99,960)

Exercise of options

617

494

Net cash used in financing activities

(32,426)

(99,466)

(311)

556

91,752

(9,381)

302,543

155,329

394,295

145,948

CONDENSED CONSOLIDATED FINANCIAL HIGHLIGHTS

(U.S. dollars in thousands, except for per share data)

(Unaudited)

Capital Equipment revenues - United States

33,669

41 %

29,542

38 %

Capital Equipment revenues - International

26,985

33 %

28,133

36 %

Consumables and service revenues

21,363

26 %

20,199

26 %

UnitedStates

International

UnitedStates

International

Minimal-Invasive

75

80

93

79

Hands-Free

1

1

3

2

Non-Invasive

24

19

4

19

100

100

100

100

RECONCILIATION OF GAAP CONDENSED CONSOLIDATED STATEMENTS OF

INCOME TO NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(U.S. dollars in thousands, except for per share data)

(Unaudited)

82,017

–

–

82,017

77,874

–

77,874

20,465

(314)

–

20,151

16,963

(310)

16,653

Research and development

3,542

(268)

–

3,274

2,895

(222)

2,673

Sales and marketing

42,932

(1,861)

–

41,071

39,727

(1,763)

37,964

General and administrative

5,022

(256)

(1,262)

3,504

2,671

(223)

2,448

Finance income, net

4,296

–

–

4,296

6,859

–

6,859

2,790

(349)

–

2,441

4,276

(676)

3,600

Basic

0.18

0.25

0.26

0.31

Diluted

0.18

0.25

0.26

0.31

Basic

63,401

63,401

68,760

68,760

Diluted

63,942

64,494

69,435

69,611

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SOURCE InMode LTD.